Question: 1 Trexoid APP Level 2 points Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last

1 Trexoid APP Level 2 points Trexoid Inc. makes a1 Trexoid APP Level 2 points Trexoid Inc. makes a

1 Trexoid APP Level 2 points Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production costs are $150 per unit and inventory carrying cost is $4 per unit per quarter. Assume that Trexoid has 11 employees at the end of the previous quarter (called Quarter O in the table below), each of whom can produce 5000 units per quarter in regular production. eBook Hiring cost is $6500 per employee and firing cost is $11500 per employee. Trexoid currently has zero inventory on hand, and they would like to have zero inventories at the end of the year. Assume hiring and layoff/firing, if necessary, occur at the beginning of quarter 1, and the number of employees will remain the same for quarters 1 through 4. Forecast demand is as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 40000 40000 60000 140000 Print References a. Given the above demand estimate, develop a production plan based on level production. Inventory may be carried in quarters 1-3, but should be o units at the end of quarter 4. Fill in the table below. Hint: to determine regular production, use the average of total forecasted demand. Then determine how many workers are needed to produce that many units. Workers hired at the start of quarter 1 are able to produce 5000 units in that and all future quarters. (Leave no cells blank be certain to enter "o" where ever required. Enter negative numbers with a minus sign in front, in the format -10. Enter answers without commas. I.e., if an answer is 10,000 enter it as 10000) o 1 3 4 Total 2 40000 40000 60000 140000 280000 70000 Quarter Forecasted demand Regular production Output - Forecasted Demand Beginning Inventory Ending Inventory Average Inventory 30000 0 Lol 0 30000 15000 Number of workers 11 14 Number of workers to hire Number of workers to fire b. Determine the cost of the level production plan. Total cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!